Roughly $8 trillion has been parked in US money market funds, waiting for a catalyst. BlackRock’s Chief Investment Officer of Global Fixed Income, Rick Rieder, says President Trump’s tentative Iran deal was it.
The geopolitical detente fueled a surge in risk appetite. The Dow Industrial Average climbed roughly 2% in a single session, the S&P 500 gained 1.8%, and the technology-heavy Nasdaq led with a jump of about 2.5%. Oil prices fell on the prospect of normalized supply, adding further support for equities.
This rotation had been building for months. Rieder described equity technicals as “extraordinary” heading into 2026, citing easing inflation and strong productivity. Falling geopolitical risk simply unlocked capital that had been on the sidelines, stabilizing near a record $8.17 trillion.
The move swept across asset classes. Bitcoin advanced past $64,000, a gain of approximately 3%, tracking the risk-on sentiment closely. BlackRock’s own spot Bitcoin ETF, IBIT, pulled in $871 million in a single week, signaling deliberate institutional allocation rather than retail speculation.